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Here's Why Duolingo, Inc. (DUOL) Fell More Than Broader Market

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Duolingo, Inc. (DUOL - Free Report) closed the most recent trading day at $102.63, moving -2.11% from the previous trading session. This change lagged the S&P 500's daily loss of 0.64%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.59%.

Prior to today's trading, shares of the company had gained 5.1% outpaced the Business Services sector's gain of 4.74% and lagged the S&P 500's gain of 9.33%.

The investment community will be paying close attention to the earnings performance of Duolingo, Inc. in its upcoming release. The company is slated to reveal its earnings on May 4, 2026. The company is predicted to post an EPS of $0.79, indicating a 9.72% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $288.6 million, up 25.07% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.08 per share and revenue of $1.21 billion, which would represent changes of -64.06% and +16.53%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Duolingo, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Duolingo, Inc. boasts a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Duolingo, Inc. currently has a Forward P/E ratio of 34.04. This indicates a premium in contrast to its industry's Forward P/E of 16.8.

Meanwhile, DUOL's PEG ratio is currently 0.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Technology Services industry stood at 1.41 at the close of the market yesterday.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 174, this industry ranks in the bottom 29% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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